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Managing Ethics and Diversity

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Title: Managing Ethics and Diversity


1
Managing Ethics and Diversity
MAN 3025 Management of Organizations
Chapter 3
2
Chapter 3 Checklist
  • Nature of Ethics
  • Stakeholders and Ethics
  • Rules for Ethical Decision Making
  • Sources of Organizational Ethics
  • Diversity of the Workforce
  • Effective Management of Diversity
  • Sexual Harassment

3
Nature of Ethics
  • Ethical Dilemmas
  • Two or more values in conflict
  • Lesser of two evils
  • Right thing to do for the benefit of society at
    the expense of self-interest
  • One of two mutually exclusive courses of action
    results in a disadvantage to one of the involved
    parties
  • Ethics Inner-guiding moral principles, values,
    and beliefs used to analyze or interpret a
    situation and then decide the appropriate course
    of action

4
Nature of Ethics
  • Societal values dictate ethics
  • Core
  • Transitional
  • Situational
  • Ethics and change
  • Time
  • Circumstances
  • Ethics promulgate laws

5
Stakeholders and Ethics
  • Stakeholders are those whom the corporation
    benefits or burdens by its actions and those who
    benefit or burden the firm with their actions.
  • Primary stakeholders
  • Secondary stakeholders
  • Debate about how to identify who or what is a
    stakeholder.
  • Stakeholder model is an ethical theory of
    management in which the welfare of each
    stakeholder must be considered as an end.

6
Stakeholders and Ethics
  • Stakeholders supply an organization with its
    productive resources and thus have a stake in
    the organization
  • Primary Stakeholders
  • Stockholders
  • Managers
  • Employees
  • Suppliers and distributors
  • Customers
  • Community, society, and nation/state

7
Stakeholders and Ethics
  • Secondary Stakeholders
  • Unions
  • Creditors
  • Competitors
  • Political groups
  • Environment
  • Future generations
  • Media
  • Beneficiary groups (Religious and charity)
  • Media
  • Educational Institutions

8
Rules for Ethical Decision Making
  • Utilitarian Rule
  • Origin Jeremy Bentham and John Stuart Mill.
  • Basic premise The greatest good for the greatest
    number.
  • Criticism
  • In practice it has led to self-interested
    reasoning.
  • Because decisions are to be made for the greatest
    good of all, utilitarian thinking has led to
    decisions that permit the abridgement of
    individual or minority group rights.

9
Rules for Ethical Decision Making
  • Moral Rights Rule
  • Origin Amalgam of Buddhism Judeo-Christian-Isla
    mic tenets Herbert Spencer, etc.
  • Basic premise Maintain and protect the
    fundamental or inalienable right and privileges
    of people affected by a decision
  • Criticism
  • Lacks a tie breaker for situations in which two
    rights conflict
  • Peoples ethical values differ, and they may
    mistakenly assume that their preferences are
    universal.

10
Rules for Ethical Decision Making
  • Justice Rule
  • Origin John Rawls
  • Basic premise Decision should distribute
    benefits and harms among people in a fair,
    equitable, or impartial manner.
  • Criticism
  • Requires individual injustices to accomplish a
    greater good. Equitable manner may not exist.
  • Premises can lead to encroachment on majority
    group rights
  • Benefits and harms may be subjective terms

11
Rules for Ethical Decision Making
  • Practical Rule
  • Origin Conventionalist Ethic (Carr) and
    Disclosure Rule (Baxter)
  • Basic premise Manager has no reluctance about
    communicating an ethical decision outside the
    company because the typical person in society
    would find it acceptable.
  • Criticism
  • Does not always give clear guidance for ethical
    dilemmas in which strong arguments exist for
    several alternatives.
  • An action that sounds acceptable if disclosed may
    not, upon reflection, be the most ethical.

12
Sources of Organizational Ethics
Cultural Experience
Religion
Ethical Values
Philosophy
Law
13
Sources of Organizational Ethics
  • Code of Ethics
  • Societal Ethics
  • Professional Ethics
  • Individual Ethics
  • Ethics Ombudsman

14
Diversity of the Workforce
Sources of Diversity in the Workplace
Federally Protected
Not Federally Protected
  • Age
  • Gender
  • Race
  • Ethnicity
  • Religion
  • Capabilities/Disabilities
  • Socio-Economic Background
  • Sexual Orientation
  • Education
  • Experience
  • Physical Appearance
  • Other

15
Diversity of the Workforce
  • 1963 Equal Pay Act
  • 1964 Title VII of Civil Rights Act
  • 1967 Age Discrimination in Employment Act
  • 1978 Pregnancy Discrimination Act
  • 1990 Americans with Disabilities Act
  • 1991 Civil Rights Act Amendment
  • 1993 Family and Medical Leave Act

16
Effective Management of Diversity
  • Challenges of Diversity in the Workplace
  • Priorities and Values
  • Preferences
  • Perspectives
  • Perceptions
  • Practices

17
Effective Management of Diversity
  • Crucial Roles in Diversity Management
  • Interpersonal
  • State organizational support of diversity
  • Serve as role model
  • Encourage cross-cultural exchanges
  • Informational
  • Monitor fair treatment of diverse employees
  • Inform employees of zero tolerance policies
  • Support community-based diversity initiatives
  • Decisional
  • Commit resources to eliminate discrimination
  • Work with supporting organizations and groups

18
Sexual Harassment
  • EEOC Guidelines on Sexual Harassment
  • Unwelcomed sexual advances, requests for
    sexual favors, and other verbal or physical
    conduct of a sexual nature constitute sexual
    harassment when
  • submission to such conduct is made either
    explicitly or implicitly a term or condition of
    an individuals employment,
  • submission to or rejection of such conduct by an
    individual is used as the basis for employment
    decisions affecting such individual, or
  • Such conduct has the purpose or effect of
    unreasonably interfering with an individuals
    work performance or creating an intimidating,
    hostile, or offensive working environment.
  • (29 CFR 1604.11(a))

19
Sexual Harassment
  • Meritor Savings Bank v Vinson (1986)
  • Quid Pro Quo
  • Sexual harassment requiring sexual favors in
    exchange for positive job treatment.
  • Hostile Environment
  • Harassment produced by workplace conduct and/or
    setting that is considered to make an abusive
    working environment.

20
Sexual Harassment
  • Harris v Forklift Systems (1993)
  • Oncale v Sundowner Offshore Services (1998)
  • Faragher v Boca Raton (1998)
  • Burlington Industries v Ellerth (1998)

21
Sexual Harassment
  • Steps to eradicate Sexual Harassment
  • Develop and clearly communicate sexual harassment
    policy endorsed by top management
  • Use a fair complaint procedure to investigate
    charges of sexual harassment
  • If it has been determined that sexual harassment
    has taken place, take corrective actions as soon
    as possible.
  • Provide ongoing sexual harassment education and
    training to all organizational members, including
    managers.
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